Battling slim occupancies
Jaideep Dang, Managing Director, Hotels & Hospitality Group, JLL, gives an overview of the damage post the COVID-19 outbreak
We’re advising hoteliers to carefully consider holding room rates, despite low occupancies. Travel bans will greatly restrict the number of business and leisure travellers for the time being and will not provide any incentives to potential guests. Slimmer occupancies will always place pressure on hotel revenues, and given this unprecedented environment, maintaining room rates may serve as the primary contributor to managing revenues and fixed operating expenditures.
The COVID-19 outbreak has impacted the hotel market across India, leaving many hotel owners and operators in the lurch. MD, Hotels & Hospitality Group, JLL India, gives an overview of the damage.
Once the lockdown is lifted and the environment becomes conducive to restart travel, hotels could first shift their focus on domestic demand – essentially in the hinterland. It is possible that travellers may be hesitant to travel by air and prefer driving down to upcountry locations ideally within five to six hours from their homes. These could be short trips preferably around weekends. Potential resorts may likely start getting back room demand earlier than city business hotels. On the other hand, city hotels could rely on staycation demand – which is again a form of leisure travel originating from within the city.
At ibis Delhi Aerocity we are providing full support and assistance to the government in their efforts to control the situation. At present, we have reserved 149 rooms across three dedicated floors for guests who have been instructed by authorities to undergo a selfquarantine process.
We remain committed to continuing this facility till this pandemic is managed and we are informed that the state and private healthcare facilities can handle the situation and take it forward. Given the multiple lockdowns, all the hotels are currently functioning with minimum staffing.
Having said that, the safety and well-being of our staff and guests is our priority and we are following stringent hygiene procedures as per government directives to ensure that the facilities are managed well.